National Grid consults on system operator role

The first forward plan has been produced by National Grid’s Electricity System Operator (ESO) function, which is being carved out as a separate company from the transmission owner.

A consultation has been launched on the plan, which lays out the ESO’s priorities for 2018-19.

Changes are proposed in four main areas:

● flexibility – making it easier for balancing services to be offered to the ESO;

● network competition – considering greater use of distribution networks and battery storage rather than simply connecting new generation to the transmission network;

● whole system – working more closely distribution network operators;

● and level playing field – changes to the charges for connecting to and using the grid.

‘Working together’

National Grid said: “The markets and frameworks that are used to govern the electricity system need to change to meet the needs of all existing and new market participants.

“Markets for balancing services, arrangements for network charging and how transmission and distribution work together need to change so all parties can participate on an equal footing, reducing costs to the consumer.

“The change will allow all parties to develop better informed commercial strategies and compete on a level playing field with other market participants.”